International Stem Cell Corporation (OTCBB:ISCO) www.internationalstemcell.com,
a California-based biotechnology company focused on therapeutic,
cosmetic and research products, announced today that it had obtained new
capital financing and made important changes in the composition of its
Board of Directors to ensure that Independent Directors hold the
majority of Board seats.
The financing consists of $5 million in newly issued Series G
Convertible Preferred Stock (without warrants), convertible into Common
Stock at a conversion price of $0.40/share, the market price of the
Company's Common Stock on the date the offer to purchase was made. This
financing was made by AR Partners LLC, a healthcare investment firm
owned by Dr. Andrey Semechkin, ISCO's CEO and Co-Chairman of the Board
of Directors.
Concurrently with the closing of this financing, the Company elected to
its Board of Directors Dr. James Berglund, co-founder of Enterprise
Partners Venture Capital - one of the premier venture capital firms in
the field of healthcare technology founded in 1985. Dr. Berglund, with
his extensive professional experience, continues as an active
participant in the biotech and healthcare industries. Dr. Berglund will
replace Kenneth C. Aldrich, co-founder and former CEO of the Company
during the period 2008-2009, who is stepping down as ISCO Board of
Directors Co-Chairman. Although Mr. Aldrich is retiring from our Board,
he will remain as one of ISCO's largest shareholders and an active
consultant to the Board and executive management and will continue to
represent the Company as "Chairman Emeritus" in a variety of public and
private venues.
According to Mr. Aldrich, "In my view, Dr. Semechkin's willingness to
commit such a significant amount of capital to ISCO at the market price
of the Company's stock on the date of his offer represents a major vote
of confidence in ISCO's future by its most senior executive. We are
thankful to Dr. Semechkin for his support that will further advance
ISCO's parthenogenetic stem cell-based therapeutic programs and income
generating businesses."
Having a majority of independent directors on our company's Board
represents an important step in ISCO's development and in transforming
ISCO into a leading public company in the field of regenerative medicine.
"I want to thank Mr. Aldrich for his long-standing dedication and
continued involvement in guiding the Company," said Dr. Semechkin. "This
long-term investment, along with the new executive management team
recruited over the previous twelve months, will provide ISCO with the
necessary economic stability and resources to pursue its goals of
consolidating our leadership position and accelerating our therapeutic
programs," continued Dr. Semechkin.
About International Stem Cell Corporation
International Stem Cell Corporation is focused on the therapeutic
applications of human parthenogenetic stem cells and the development and
commercialization of cell-based research and cosmetic products. ISCO's
core technology, parthenogenesis, results in the creation of pluripotent
human stem cells from unfertilized oocytes (eggs). HpSCs avoid ethical
issues associated with the use or destruction of viable human embryos.
ISCO scientists have created the first parthenogenic, homozygous stem
cell line that can be a source of therapeutic cells with minimal immune
rejection after transplantation into hundreds of millions of individuals
of differing genders, ages and racial backgrounds. This offers the
potential to create the first true stem cell bank, UniStemCell™. ISCO
also produces and markets specialized cells and growth media for
therapeutic research worldwide through its subsidiary Lifeline Cell
Technology, and cell-based skin care products through its subsidiary
Lifeline Skin Care. More information is available at www.internationalstemcell.com.
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Forward-looking Statements
Statements pertaining to anticipated developments and other
opportunities for the company and its subsidiaries, along with other
statements about the future expectations, beliefs, goals, plans, or
prospects expressed by management constitute forward-looking statements.
Any statements that are not historical fact (including, but not limited
to statements that contain words such as "will," "believes," "plans,"
"anticipates," "expects," "estimates,") should also be considered to be
forward-looking statements. Forward-looking statements involve risks and
uncertainties, including, without limitation, risks inherent in the
development and/or commercialization of potential products and the
management of collaborations, regulatory approvals, need and ability to
obtain future capital, application of capital resources among competing
uses, and maintenance of intellectual property rights. Actual results
may differ materially from the results anticipated in these
forward-looking statements and as such should be evaluated together with
the many uncertainties that affect the company's business, particularly
those mentioned in the cautionary statements found in the company's
Securities and Exchange Commission filings. The company disclaims any
intent or obligation to update forward-looking statements.

International Stem Cell Corporation
Andrey
Semechkin, Co-Chairman and CEO
760-940-6383
aes@intlstemcell.com
or
Kurt
May, President/COO
760-940-6383
kmay@intlstemcell.com
or
Lippert/Heilshorn
& Associates
Don Markley
310-691-7100
dmarkley@lhai.com